Once an issuer has obtained DTC eligibility they can request their transfer agent submit to DTC for electronic (DWAC, FAST, DRS) eligibility. However, the issuer’s transfer agent must be a DTC authorized DWAC/FAST (FAST Automated Securities Transfer Program) and DRS (Direct Registration System) participant. These programs allow shareholders to hold securities as the registered owner in electronic form on the books of the transfer agent rather than holding a physical certificate. DTC participants can request shares from the issuer’s transfer agent directly and stock can be deposited into the shareholders brokerage account.
- Reduce time on stock deposits into brokerage account from weeks to hours.
- Eliminate lost stock certificates and replacement fees.
- Eliminate additional brokerage fees associated with processing physical certificates.
- Save on courier charges for shipping stock certificates.
- More attractive to potential investors.
How the FAST Program Works
The two main components to the FAST system are shareholders can deposit their stock electronically by either DWAC or DRS.
- DWAC: Deposit and Withdrawal at Custodian, or
- DRS: Direct Registration System
The main difference is DWAC deposits require a Medallion Guaranteed Stock Power and DRS deposits are paperless.